Method of Money Laundering Essay

Structuring depositsThe Bank Secrecy Act of 1970 requires banks to report any deposits exceeding $10,000.01. This is not a problem for most of us, but it is a big barrier to property-laundering criminals spirit to rid themselves of virtually cumbersome currency. Launderers will hire low-level lackeys to garner multiple small deposits, either on different days or at various branches on the same day to work around this disagreeable law that attempts to deter coin laundering, It is a complex, time-consuming way to launder money, and one that has been rendered even more difficult by computer algorithms that look for mirthful deposit behavior and raise an red flag when one is found.see morespeech on money for aslBanksFar more exciting and ball-shaped in the practice of money laundering is the use of offshore and abroad banks. Nations like the Cayman Islands, Bahamas and Panama are very accommodating to criminals looking to legitimise their cash these nations are unrestricted wit h regards to burdensome banking laws and anti-laundering procedures, which ultimately helps hide the launderers behind strict veils of secrecy. Opening accounts in a number of these offshore accounts allows launderers to move their money around and create a nearly impenetrable defense against curious investigators.Some countries (China and Pakistan among others) have a history of well-established underground banks that have been accepting deposits from incomplete clients for centuries. They legally operate outside of the mainstream banking system and outside the control of the government. There is often no paper work, just the reputation of the principals involved.Shell companiesEnterprising criminals looking to legalize their cash domiciliate set up various companies that exist for the sole purpose of money laundering. These so-called shell companies often offer some sort of service that can easily be fudged and usually accepts cash as payment when doing legitimate business (beau ty salons and trades like plumbing are ordinarily used). The soiled money is funneled into the company, made to look like legitimate in surveil with fake invoices and receipts and thence deposited into the shell companys accounts as clean, wonderfully disposable cash money.Using these shell companies to stay one step ahead of the man is a shell game of its own. Forensic accountants can air outdoor(a) layers of deceit and reveal the shady transactions below, which means that only true criminal masterminds with really good accountants should consider this as a laundering option. accepted businessesCriminals looking to clean their money can also be good corporate citizens by investing in legitimate business. Cash-rich businesses like bars and strip clubs are the most common, with the dirty money seeded in with the legitimate revenue and squirreled away in the business bank accounts. The safer method is to use the dirty money to buy the services offered by the legit businesses, but this necessitates lots of fake invoicing and troublesome number fudging and you can safely assume that most criminals choose the patrician money of crime out of laziness, which makes this a decidedly unattractive alternative when looking for money-laundering options.GamblingWith so many cash transactions taking egress every day, casinos have become highly valuable money-laundering institutions because chips can be purchased anonymously with dirty money and after a period of time they can be cashed back in and fliped into clean money. Even if the casino follows the letter of the law and asks for ID to record the transaction, the Feds are powerless to prove the money was ever dirty. Global criminal enterprises can even ask that the winnings be used as credit at the casinos overseas franchises.With some games offering as much as 93% return on your money, certain criminals are willing to chance some losses and turn their illicit cash into legitimate money by actually gambling with i t. One particularly popular method involves two associates at the roulette table. succession one bets a substantial amount on red, the other places a similar amount on black. Provided neither zero nor double zero come up, one side doubles the money and turns it legit at the same time. However, sophisticated surveillance and casino security have limited this scheme in young years.Down at the track, some crafty launderers will put the word out that they are willing to buy winning tickets at a premium. They then cash in the tickets as clean money and pass the bonus of cleaning the money onto the unsuspecting legitimate gambler, who is usually so stunned at their good fortune that they cannot appreciate their predicament.No money, No problemsIt is an enviable position that many would like to be in having so much cash that you do not know what to do with it. However, cleaning money is harder work than earning it. Criminals have to stay one step ahead of the law and they constantly run the put on the line of losing their cash to shady launderers or eagle-eyed cops. Often, it is not the drug dealing or the extortion that provokes these law breakers busted, it is their attempts at concealing the money. So, if you ever decide to get in The Game, watch what you do with your money.